Who should file ITR 2 and who should not File ITR 2, what are its key features and how to file it online step by step, all the information is available on this article.
Income tax is important for the growth of any country. It is a major revenue source for the government. This amount is used for education, healthcare, and infrastructure of the country.
Income Tax Returns help to identify the people who have filed returns and paid taxes. They also help to curb any tax malpractices in the country. There are various provisions under the Income Tax Act, 1961, that attract penalties if returns are not filed or taxes are not paid on time.
Different types of ITR forms are applicable based on residential status and income. ITR-2 is one such ITR form. ITR-2 is to be filed by an individual or a Hindu Undivided Family (‘HUF’).
Also Learn: India Budget 2025: All Key Highlights
What is ITR 2- What You Must Know About It?
Eligibility criteria to file ITR-2?
ITR-2 can be filed by a resident/non-resident individual and HUF having:
- Income from salary/ pension - This includes income from salary, allowances, pension, etc.
- Income from more than one house property—This includes rent income received from tenants of one or more house properties.
- Income from capital gains - This includes income from the sale of assets such as property, stocks, mutual funds, etc.
- Income from other sources – This includes interest earned from a savings bank account, fixed deposits, winnings from lotteries, horse races, etc.
- Income from foreign assets – This includes income from foreign bank accounts or foreign immovable property.
- Agriculture income (above Rs.5,000)
ITR-2 can be filed by a person who is not eligible to file ITR-1. It can also be filed by an individual to whom clubbing provisions apply i.e. If the income of the minor and spouse from only the above sources gets clubbed in his hands, he can file ITR-2.
Also Learn: Who Can File ITR1? Understanding the Basics
Who should not file ITR-2 ?
ITR-2 cannot be filed by any individual or HUF earning business income. It also cannot be filed by a partner of a partnership firm earning interest, salary, bonus, commission, or remuneration from the firm.
Salient features of ITR-2?
ITR-2 form is divided into two parts, Part A and Part B. Part A contains general information. Part B is the computation of total income and tax payable on net total income. The form also includes various schedules such as details of income from salary, income from house or property, income from capital gains, income from other sources, loss details, deduction details, etc.
You will have to disclose the details of movable and immovable assets in Schedule AL along with liabilities if your total income is more than Rs. 50 lakhs. If you are a non-resident or resident but not ordinarily resident, only the details of assets located in India are to be mentioned.
You can download the PDF of ITR-2 from the official website of the Income Tax department for AY 2024-25 - link.
Also Learn: How to File ITR 1 Online: Step-by-Step Guide
Is ITR-2 for you ? How to determine it ?
You are an individual/ HUF, then you may be liable to file ITR-2 if :
- Your income is above Rs. 50 lakhs
- You are a non-resident individual
- Your income does not have business income
- Your income includes income from more than one house property
- You are a director in a company
- You own unlisted shares of a company
- You have income from outside India
How to file ITR-2?
The steps to file ITR-2 are as under:
- Step 1: Visit this link
- Step 2: Login using your user ID and password
- Step 3: Go to the ‘E-file’ section > click on ‘Income tax Returns’ > click on ‘File Income Tax Return’
- Step 4: Select the relevant assessment year and mode of filing > click on ‘Continue’
- Step 5: Click on ‘Start New Filing’
- Step 6: Select the applicable status i.e. individual or HUF
- Step 7: Select ITR-2 from the drop-down under the section ‘I know which ITR Form I need to file’ > click on ‘Proceed with ITR 2’
- Step 8: Read the instructions and keep the documents ready as per the list > Click on ‘Let’s get started’
- Step 9: Select the appropriate reason for filing the return and click on ‘Continue’
- Step 10: Review the pre-filled data in all schedules and fill the data as required. Click on ‘Confirm’ for each schedule.
- Step 11A: Once all schedules are confirmed > Click on ‘Pay Later’ or ‘Pay Now’ for payment of tax
- Step 11B: In case of no payment of tax click on ‘Preview return’ > enter basic details > click on ‘Proceed to Preview’ and check the return
- Step 12: Click on ‘Proceed to validation’ > select the option to verify return > click on ‘Continue’
The link to File ITR-2 Online User Manual.
FAQ: Who Should File ITR 2: A Comprehensive Guide
1. What is the difference between ITR-2 and ITR-3?
- The key difference is that ITR-3 is to be filed only if the individual or HUF has business income.
2. How many times can an ITR be revised?
- An ITR can be revised any number of times before the prescribed due date. As per the current law, the due date is earlier of 31 December of the assessment year or completion of the assessment.
3. What is ITR-2 in Income-tax?
- ITR-2 is an Income Tax Return form. ITR-2 is to be filed by individuals or HUF having income from salary/pension, income from house property, or income from capital gains.
4. Are Income Tax Return form 2 and ITR-2 different?
- No, they are the same.